let me crunch some numbers (please tell me if i made any errors anywhere):
- deposit $1000 to bitstamp and pay $5 fee
- buy $1000 worth of bitcoin in (on? at?) bitstamp at $1170.88 you pay $2.5 fee and get 0.85192333BTC
- withdraw bitcoin to kraken and pay nothing! or 0.1% with bitgo (apparently)
- sell bitcoin at $1186.54 and get $1010.54 and pay $2.62 fee so you are left with $1008.21
- withdraw to your bank and if you pay the same fee as bitstamp you end up making $3.21
this is 0.32% profit. if you think the risk is ok such as price changing up and down, withdrawals getting stuck and taking long, ... then do it.
You just put the last nail on the coffin, so to speak. Had arbitrage been that profitable then we could have heard many people doing it but it is not that is why only fools can be doing it. It is not that easy to move funds from one exchange into another and by the time you can be able to do it the Bitcoin value has already moved away from our computation. Arbitrage is a good business unfortunately it is not possible and profitable here in Bitcoin. Trading is much better to do on cryptocurrency , that is aside from just holding our own Bitcoin somewhere.